Some areas have high C on C returns but might have low rental collections vs. other areas where the C on C or Cap rates are lower but more consistent and less volatile income streams. 

The property is in a great area (C+ OR B-) location.

A,B C or D--No water dispensers, no ice makers.

At this point in time, I would rather bet on a rental bounce locally (not necessarily in the city) based on a post-covid recovery, rather than perpetual shrinking cap rates in those hot out-of-state markets (given that cap rates here are potentially equal or better than those other markets atm, and we may be headed into a higher interest rate environment).That's not to say other markets won't make people money.

A class C or D building in a not good area will have a high Cap Rate, to reflect the higher risk in the asset.In your example, the NOI is $72k per year.

The strata seems to be well managed and there is a good sized contingency reserve fund of ~$300k available.2) With the property being vacant I should be able to get market rents for it of around $2700 per month, but I do know that will be low increased over the years.3) I have started looking at other markets, but since this is my first and there would be tons of learnings from self managing my first rental I would like to stick to buying in my town.4) I have factor PM fee in and it would leave me with a smaller cashflow or at the least it would be breakeven.

You can bet on your tenants being in place over the next year and that cash flow coming in over that 1 year lease, but you can't be sure how the stock market is going to perform over that same time period. 

Bet on the Fed (and the human nature of government officials). 

I don't have a problem renting your typical 3BR/1BA C-Class homes without A/C or finished basements.

Hi all, how does one tell if the area you're looking to buy is either A, B, C or D?